Free Zone Company is more expensive than an Offshore Company and it typically takes 4 to 6
weeks to establish. However, it is an onshore company (with some offshore characteristics). This type
of company is ideal for market entry because it will give you the physical presence in the UAE
through office space and visas without the need for a local sponsor. A Free Zone Company has
offshore characteristics in the sense that all business needs to be carried out offshore/internationally
or within the Free Zone itself.

Yes, all Free Zone companies have a trade license reflective of their business activity. It is possible to
obtain licenses for Trading, Manufacturing, Industrial, and Consultancy and Services activities and, as
mentioned above, most Free Zones specialize in a particular sector.

No, you can only carry out business internationally (outside the UAE) or within the Free Zone itself.
You are not allowed to carry out any business on the mainland of the UAE. If your target market is
mainland UAE you will need to establish a UAE Onshore Company with a local sponsor. Sovereign
can also assist with this.

Yes. Depending on the nature of business, some external approvals may be required from certain
Ministries or regulatory authorities for particular activities. For example, an investor looking to set up
an educational or training practice may be required to seek approvals from the Knowledge and

Human Development Authority (KHDA). If there are no external approvals required, the Free Zone
Authority will carry out its own review of proposed business activity during the incorporation process.

A manager must be appointed for the company and this person will be responsible for the day-to-day
running of the company and is generally responsible for the operation of the bank account and the
signing of any contracts on behalf of the company. For any changes that are made to the company
structure, the manager will be required to sign off. The manager must be a UAE resident or have the
intention of taking up residency.A manager must be appointed for the company and this person will be responsible for the day-to-day
running of the company and is generally responsible for the operation of the bank account and the
signing of any contracts on behalf of the company. For any changes that are made to the company
structure, the manager will be required to sign off. The manager must be a UAE resident or have the
intention of taking up residency.

That will generally depend on the type of office/premises selected. Between 2 to 3 visas will generally
be allocated for a Virtual Office/Flexi-Desk option, while the size of a physical office space will dictate
how many visas are allocated (generally 1 visa per 10sq. /m).

It is possible to apply for a Tax Residency Certificate for a Free Zone Company and this can be
extremely beneficial if the intention is to utilize the UAE’s network of double tax treaties.